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Writer's pictureThe Decision Maker

Federal Reserve’s Statements on bond-buying programme, sends Wall Street higher

Wednesday, 22 September 2021


With the Federal Reserve’s signal that tapering of their bond-buying programme is not far away and as concerns about China Evergrande Group’s debt woes eased, the S&P 500 rose 1%, Dow Jones Up 1.1% and Nasdaq climbed 1%, on Wednesday.


In a Press Conference, Fed Chairman, Jerome Powell stated: “Participants generally view, so long as the recovery remains on track, a gradual tapering process that concludes around the middle of next year is likely to be appropriate”.


Meanwhile the tech sector was dragged lower by Facebook. The social media giant declined 4%, following its warning that Apple ad-tracking would hurt growth.



Markets summarised


Stocks

  • The S&P 500 rose 1% as of 4:01 p.m. New York time

  • The Nasdaq 100 rose 1%

  • The Dow Jones Industrial Average rose 1%

  • The MSCI World index rose 0.6%


Bonds

  • The yield on 10-year Treasuries declined two basis points to 1.30%

  • Germany’s 10-year yield was little changed at -0.32%

  • Britain’s 10-year yield was little changed at 0.80%


Currencies

  • The dollar index rose 0.094%

  • The euro fell 0.3% to $1.1694

  • The British pound fell 0.3% to $1.3620

  • The Japanese yen fell 0.5% to 109.79 per dollar


Cryptocurrencies


  • Bitcoin last rose 6.93% to $43,409.48 following three straight days of declines.


Commodities

  • West Texas Intermediate crude rose 2.1% to $71.97 a barrel

  • Gold futures fell 0.6% to $1,767.60 an ounce



The week ahead


  • Thursday: Bank of England rate decision

  • Friday: Fed Chair Jerome Powell, Fed Governor Michelle Bowman and Vice Chairman Richard Clarida discuss pandemic recovery

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